Segmentation

Segmentation

Or: How to use 6 different data sources to create valuable and addressable customer segments for our customer?

Situation

The online advertising business happens in real-time. From selecting customers, picking the suitable advertisement, buying the advertising space to delivering the advertisement at the customers desktop, tablet or mobile screen.

Together with one of our customers we aimed to increase advertising effectiveness by building various customer segments that could then be adressed with special advertisements. An example one could think of might be: Middle-aged man, wife and 2 kids, high income, interesed in buying a new car.

Task

Perform valubale and addressable customer segmentation from available data.

Address them with individually suitable advertising content.

Measure and evaluate performance of those segments.

Data Sources

We used several different data sources to create our data sets:

Market data from our client

Advertising contact data from service partner

Demographic data from service partner

Geographic data from external source

Wealth data from external source

Advertising performance data from service partner

Data Science

These data sources have been combined to create a powerful database. Afterwards we started to build customer segments fitting predefined business considerations. These segmentation results could then be handed over to our advertising service partner and addressed with suiting content. Afterwards the performance data of those segments in terms of advertising effectiveness was given back to us and analyzed. This analyzing gained insight as to which segments should be updated respectively continued.

Tools & Languages

We used different tools and languages working on these tasks:

Hadoop

Impala

Jupyter

SQL

Python

Summary

By building, applying and measuring customer segments and their performance we could gain valuable insights. Due to better suiting advertisments we were able to increase advertising effectiveness and to decrease overall advertising costs.

Feel free to contact us in case you want to learn more about possible business case applications for your company.